Natural Gas Stalls as US Heatwave Fades Before Weekend

Natural gas settled into a narrow range Wednesday as a short-lived U.S. heatwave failed to give the market a sustained push higher.

Futures barely budged in early trading, with traders eyeing a stretch of hotter weather that is expected to dissolve by the start of next week. The seasonal pattern is weak this time of year, and the temperature bump did not produce the kind of price pop that would normally invite short-selling at signs of exhaustion, one proprietary trader said.

The 200-day exponential moving average sits just overhead and is drawing attention as a technical reference. A move above that line would open a path toward the $3.50 level. On the downside, the $3.00 area is acting as support and could attract buyers on a pullback, the trader said.

Without a clear catalyst, the market looks stuck in a short-term range. Moves that push too far in either direction near those key levels tend to reverse, creating entry signals for quick trades. The trader said he has no interest in taking an aggressive position and is waiting for signs of exhaustion to short into, or occasionally jumping in for a back-and-forth range-bound setup.

The broader risk backdrop remains tilted toward the dollar. A stronger greenback is shifting appetite across currencies, commodities and indices, with the [US 10-Year Yield, EUR/USD, DAX and Platinum Forecasts – Strong Dollar Shifts Global Risk Appetite] showing the divergence in play. For natural gas, the next few days hinge on whether the heatwave produces any last-minute demand before cooling returns.

For traders looking to size positions, a [position size calculator] can help calibrate entries around the $3.00–$3.50 band. The [forex market hours] tool is useful for timing around the U.S. inventory report, the week’s biggest scheduled event for the contract.